Srijan Mahila Vikas Sahyog Samiti, a cooperative society based at Sabour in Bhagalpur district, has been identified as the beneficiary of the more than Rs 1,400-crore government fund transfer scam.

The office of Srijan Mahila Vikas Sahyog Samiti at Sabour in Bhagalpur district of Bihar. (HT file photp)

Government employees in Bihar’s Bhagalpur district will have to furnish a declaration stating that neither they nor their immediate relatives have taken loan from the scam-tainted Srijan Mahila Vikas Sahyog Samiti for receiving their November salary.

The Srijan Mahila Vikas Sahyog Samiti, a cooperative society based at Sabour in Bhagalpur district, 240 km east of Patna, has been identified as the beneficiary of the more than Rs 1,400-crore government fund transfer scam.

District magistrate (DM) Adesh Titirmare, in an order issued on Tuesday, directed the drawing and disbursement officer of different departments to forward to the treasury only those salary bills which are enclosed with the declaration by employees.

The employees who had taken loan from Srijan or whose relatives had received money from the cooperative society would be required to furnish details of transactions to the senior deputy collector (establishment), the order said.

More than 10,000 government employees, including officers, posted in different departments of the district will be affected by the order, the copy of which is in possession of HT.

The treasury officer has been also intimated about the order.

Earlier, CBI probe as well as internal inquiry into the scam revealed that many government employees and their relatives who became members of Srijan Mahila Sahyog Samiti had had received loan and illegal grants from the cooperative society.

The Srijan scam came to light when a Bhagalpur district urban development authority (DUDA) cheque for Rs 10.32 crore, issued by the district magistrate under the Mukahyamantri Shaheri Vikas Yojana, bounced on account of lack of funds.

The CBI took over the investigation of the scam after chief minister Nitish Kumar recommended a probe by the premier investigating agency.

The size and scope of the scam has be increasing by the day and so far diversion of more than Rs 1,400-crore fund of from various departments in Bhagalpur, Banka and Saharsa districts to the Srijan has been detected. Nineteen FIRs have already been registered for the alleged diversion of funds in Bhagalpur and the CBI has interrogated nearly 15 officials, including IAS and bank officers. The IAS officers questioned by the investigating agency were earlier posted at Bhagalpur.